Citigroup Inc. plans to retain ownership of the Financial Research Corp. unit of Bisys Group Inc. after it closes its purchase of the New York company, according to a published report.
Citi announced its agreement last month to buy Bisys, which is ranked by Hedge Fund Manager as the fourth-largest hedge fund asset administrator. Citi said then that it would sell Bisys' retirement and insurance operations to the private equity firm J.C. Flowers & Co., for $800 million.
But this left open whether Citi would keep the Financial Research unit, which supplies market analytics, research, and related services to clients and tracks mutual funds, separately managed accounts, alternative investments, and other financial services companies.
The Reuters news agency cited an interview Friday with Andrew Smith, the head of Citi's North America funds and securities services unit. "It's a hot property, and a property that we will maintain because of its need in the industry," he was quoted as saying.
